Markets traditionally kick back into high gear after Labor Day, but one should not underestimate this last week of August. Trade talks remain at the forefront and last week’s newest round between the United States and China failed to yield true substance. However, the purpose was to delay the imminence of the third wave of tariffs in which the White House would impose $200 billion on Chinese goods; this, in our opinion, would be the official start of a trade war.
Although everyone agrees that the electric revolution is looming, there is no consensus about the pace and the detailed form of the upcoming shifts in the automotive industry.
In the previous sections of this edition of the Market Overview, we presented the demand and supply outlook for platinum and palladium. In that part, we would like to analyze the potential benefits of adding these precious metals into the investment portfolio.
According to the charts, the level of resistance for the long term investors is at the $ 819.00 to 820.00 level in spot. That area has been challenged this year a few times this year with no follow thru on any London fixing price. Currently, the spot price of Palladium is trading at $786.00. Also, a look at gold and silver.
The yuan collapse sends China physical gold premium soaring to three-year highs, according to Bloomberg: Two weeks ago, China joined the long procession of countries to declared war on cash and gold. The result has been a new all-time high in the bullion Dealers shops of $40 dollars over spot on the main land of China.
The S&P 500 futures are down .4% today. Microsoft hit all time highs on its earnings but that has failed to boost the broader market. We would not be surprised to see a test of the 2100 level soon.
Just behind the podium of precious metals (occupied by gold, silver and platinum) is palladium – an important, but often overlooked investment commodity.
Today, understanding palladium is more important than ever because there are important correlations between the palladium/gold ratio and stock market prices. Currently, the ratio of palladium to gold is giving warning signals for both the economy and the stock markets.
Another air disaster did nothing to allay fears of possible terrorist activity, even as there has been no positive determination of the cause of Egypt Air flight 804.
